Same funda due to which IT wanted to take over MaxJet

http://www.thehindubusinessline.com/2006/08/10/stories/2006081003251400.htm
Air Deccan subsidiary to start services from Colombo to India
Ashwini Phadnis

New Delhi , Aug. 9

Deccan Lanka, a subsidiary of Air Deccan, now plans to start operating flights between Colombo and points in India with the 48-seater ATR 42-320 aircraft.

"We will be shifting three ATR aircraft from India soon. We hope to be able to start operating regular flights to India. We will also look to start operating the Airbus A-320 aircraft that is bigger and can hold more passengers within 3-6 months of starting operations," a senior airline official told Business Line.

The Managing Director, Air Deccan, Capt G.R. Gopinath, is to lead a team to Colombo shortly to take stock of the situation there and finalise the launch date apart from other details, including the flight timings and the routes on which the airline would start the new service.While the airline plans to offer passengers a low-cost alternative of flying between Sri Lanka and India initially, it would also offer low-cost flights between Colombo and points in the Gulf and South-East Asia with the larger A-320 aircraft. The airline plans to provide regular flights with the A-320 between Colombo and Sharjah, apart from connecting Singapore and other cities in South-East Asia.

The airline is looking to connect Colombo to five cities here, including Thiruvananthapuram, Tiruchi, Kochi, Madurai and Coimbatore.

Air Deccan holds 52 per cent of the equity in the new joint venture company, while the rest is held by two other entities — including a company floated by the son of former Sri Lankan politician, Mr Gamini Dissanaike.

The decision to set up the new company follows the Sri Lankan Government announcement of allowing airlines other than the national airline, SriLankan, to start operating regular international flights from Colombo.

So, getting to fly overseas (the Gulf) this way seems to be the way to get out of the mess. Govt may change the rules again. But the rumour is that the Govt may now seriously pursue the dues owed to the AAI by the Private airlines. Air Deccan has huge dues.

http://www.financialexpress.com/fe_full_story.php?content_id=138950
Deccan Aviation’s Sri Lanka JV launch delayed following violence 
 
Posted online: Thursday, August 31, 2006 at 0000 hours IST 
  

MUMBAI, AUG 30:  The Sri Lankan joint venture of India’s Deccan Aviation Ltd will delay the launch of scheduled operations following a rise in violence in the island country, a top official of the parent company said.
Deccan Lanka Pvt Ltd, 52% owned by the Indian company, had initially hoped to launch the services in October, but that would not be possible now, GR Gopinath, Deccan Aviation’s managing director, said on Wednesday.

“We are reviewing it and are waiting for the violence to subside,” he said. “The scheduled October launch will not happen.”

Deccan Aviation, which runs budget carrier Air Deccan, pins hopes on the Sri Lankan venture to start flying international routes as India allows only five-year old airlines on such routes. Air Deccan started scheduled operations in August 2003.

The airline official had said Deccan Lanka could tap some of the aircraft scheduled to join the Indian firm’s fleet to start operations. Overseas destinations would be Deccan Lanka’s focus.

Spirits maker UB Group, which runs Kingfisher Airlines, has floated Kingfisher Airline Inc in the US for a Deccan Aviation, which has a fleet of 14 Airbus, A- 320 jets and 21 ATR turbo-prop planes, has placed orders for nearly 100 more to be delivered over the next 90 months. similar purpose.

Shares in Deccan Aviation, which listed in the BSE in June, closed 1.5% down at Rs 84.55 in a flat Mumbai market.

—Reuters